- Pending home sales index drops sharply to 71.3, signaling weaker future transactions
- Year-over-year decline of 2.5% marks continued cooling from April 2024 levels
- Divergence emerges between struggling existing home market and resilient new home sales
The US housing market showed fresh signs of strain as pending home sales unexpectedly tumbled 6.3% in April to 71.3, according to data released today by the National Association of Realtors. The monthly decline follows March's brief rebound and represents a 2.5% drop from April 2024 levels, suggesting the market may be entering a more sustained cooling period.
Contracts for existing homes typically close within 45-60 days, making the pending sales index a closely watched leading indicator. The April slump points to potentially softer closed sales figures for May and June at a time when mortgage rates remain elevated and affordability challenges persist.
"This isn't just a blip—we're seeing fundamental demand constraints take hold," said a housing economist familiar with the report who asked not to be named while the NAR prepares its official commentary. "Between inventory limitations at certain price points and financing hurdles, many buyers are hitting pause."
The weakness contrasts with stronger performance in the new home market, where builders reported a 10.9% monthly sales increase in April. Industry analysts note that builders have been more aggressive with incentives and price adjustments compared to existing homeowners, creating a two-tiered market dynamic.
Regional breakdowns weren't immediately available, but the national figures suggest the spring buying season may fall short of expectations. The NAR is expected to address whether recent economic data—including stubborn inflation readings that could delay Federal Reserve rate cuts—has altered their 2025 housing market forecast.
Correction: An earlier version misstated the month-over-month comparison period. The 6.3% decline compares April 2025 to March 2025.